The Optimization Imperative: Understanding Procter and Gamble’s New Strategy
The story of how Procter and Gamble became one of the most profitable consumer goods companies is a perfect case of a strategy aligned with execution:
- Conduct extensive market research to determine consumer problems
- Use the research to develop everyday products that solve the problems
- Manufacture the products at scale
- Support the new products with significant marketing and brand investments
- Command a premium price
There’s more detail, like how P&G engineers leveraged existing technologies to extend into adjacent categories (most notably paper towels into said diapers), or how salespeople pioneered joint business planning with Walmart, or how its brand teams worked with advertising companies to build iconic brands.
This article won’t focus on those stories.
Instead, it’s going to look at the path ahead.
In November of 2022, Procter and Gamble unveiled a new corporate strategy. Officially it’s unnamed. Unofficially, I’m calling it the Optimization Imperative because, at its core, it’s about using information technology to optimize all aspects of an already best-in-class organization.
But let’s back up a bit. Let’s quickly talk about how P&G got to where it is.
